Below 1.75 you lose money on every order. Above it, you profit.
- Contribution margin / order
- $34.20 (57%)
- Max profitable CPA
- $34.20
- Target ROAS at 15% net margin
- 2.38
Formula: breakeven ROAS = order value ÷ contribution margin. Margin = price − COGS − shipping − fees.
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Common questions
What is breakeven ROAS?
Breakeven ROAS is the return on ad spend at which an ad neither makes nor loses money. It equals your selling price divided by your contribution margin (price minus product, shipping and transaction costs). Below it you lose money on every order; above it you profit.
How do I calculate breakeven ROAS?
Divide your average order value by your contribution margin per order. Example: a $50 order with $30 of product, shipping and fee costs leaves a $20 margin, so breakeven ROAS is 50 / 20 = 2.5.
What is a good target ROAS?
A common rule is breakeven ROAS plus a profit buffer. If your breakeven is 2.5 and you want a 10% net margin on revenue, you need to hold ROAS meaningfully above 2.5. The calculator shows the exact target for the margin you choose.